Group 1: Government Debt Clearance Initiatives - The recent government initiatives aim to clear overdue payments, with a focus on special loans and bonds to support this effort[2] - In 2025, the second batch of special debt limits was set at 794 billion CNY, with 200 billion CNY specifically allocated for clearing government debts[2][3] - The total overdue payments in Hunan's Xiangxi region reached 88.43 billion CNY, accounting for 10% of the local GDP in 2024[5] Group 2: Financial Tools and Projections - The estimated scale of overdue payments nationwide could reach approximately 14 trillion CNY, with a potential net amount of around 9 trillion CNY after accounting for overlaps[5] - Special loans for debt clearance are projected to be around 3.55 trillion CNY, with a monthly issuance of approximately 1,422 billion CNY over 25 months[7] - The issuance of special debt for clearance is expected to total about 8.73 trillion CNY if the current ratio of 19.8% is applied nationwide[4] Group 3: Timeline and Goals - The target for clearing overdue payments is set for June 2027, with specific annual reduction goals of 40%, 40%, and 20% for 2025, 2026, and 2027 respectively[6] - The regulatory framework aims for a complete clearance of overdue payments by mid-2027, with a focus on various debtor categories including government and enterprises[6]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report Since May 2025, multiple provinces have adjusted their fiscal budgets this year, and some have disclosed the latest adjusted budget plans, including the situation of clearing overdue payments to enterprises. The report sorts out the progress of clearing overdue payments at the provincial, municipal, and district - county levels [8]. 3. Summary by Related Catalogs 3.1 Provincial - Level Clearing Progress - Four provinces (Guangxi, Hunan, Yunnan, and Shaanxi) have disclosed details about clearing overdue payments to enterprises. Hunan and Yunnan earmarked 20 billion and 35.6 billion yuan respectively; Guangxi will use part of its 36.5 - billion - yuan special bond quota, and Shaanxi will use part of its 50.1 - billion - yuan special bond for this purpose. Shaanxi has also cleared all overdue payments within the ledger [1][9]. 3.2 Municipal - Level Clearing Progress - **Specific Repayment Scale**: In 2024, cities like Qionghai, Wenchang, Wanning in Hainan and Yangquan in Shanxi cleared 745 million, 300 million, 220 million, and 8.07 million yuan of government - owed enterprise payments respectively. Gannan Prefecture in Gansu allocated 520.74 million yuan in government bonds in 2025 for this purpose [2][11]. - **Clearing of Ledger - based Overdue Payments**: Cities such as Ulanqab in Inner Mongolia, Zhongwei in Ningxia, the whole of Shaanxi Province, and Zhaotong in Yunnan have cleared all overdue payments within the ledger. Mianyang in Sichuan completed the "provincial ledger" clearing of 2024 overdue payments [2][11]. - **Bonds Available but No Specific Repayment Amount**: Some cities like Chongzuo, Fangchenggang, etc. in Guangxi, Anshun in Guizhou, Zhangjiakou in Hebei, and Datong, Tongchuan in Shanxi can use refinancing or special bonds to clear overdue payments, but the actual repayment amount is not disclosed [2][11]. 3.3 District - County - Level Clearing Progress - **Specific Repayment Scale**: Many districts and counties have reported specific repayment amounts. For example, Dejiang County in Guizhou repaid 2.059 billion yuan, followed by Gushi County in Henan, Yongning County in Ningxia, and Zhaoyang District in Yunnan with 1.23 billion, 1.145 billion, and 815 million yuan respectively. Most payments are to small and medium - sized or private enterprises. The funds come from various sources, such as bank loans and bond funds [3][15]. - **Clearing of Ledger - based Overdue Payments**: Districts and counties in Guizhou, Sichuan, and Shaanxi, such as Bijiang District and Jiangkou County in Guizhou, Chuanshan District in Sichuan, and some districts and counties in Shaanxi, have cleared all overdue payments within the ledger [3][15]. - **Bonds Available but No Specific Repayment Amount**: Some districts and counties like Lingyun County in Guangxi, Qixing District in Guangxi, Xifeng County in Guizhou, Guancheng District in Henan, and Dongli District in Tianjin can use refinancing or special bonds, but the actual repayment amount is not disclosed [4][16].

Core Viewpoint - The article highlights the increasing issue of accounts receivable and delayed payments faced by small and medium-sized enterprises (SMEs) in China, prompting government initiatives to address these challenges and support the private economy [1][2]. Group 1: Current Situation of SMEs - SMEs are experiencing a significant increase in accounts receivable, with the total amount reaching 26.06 trillion yuan by the end of 2024, reflecting an 8.6% year-on-year growth [1]. - The phenomenon of "chain debts" is prevalent, where SMEs struggle to recover payments, leading to operational difficulties [1]. Group 2: Government Initiatives - The State Council approved the "Action Plan for Accelerating the Clearance of Corporate Accounts Payable" in March, demonstrating a strong policy commitment to resolving payment issues [2]. - New regulations, including the revised "Regulations on the Payment of Funds to Small and Medium-sized Enterprises," will take effect on June 1, establishing specific requirements for payment, supervision, and legal responsibilities [2]. Group 3: Long-term Mechanisms and Social Credit - There is a need for a long-term mechanism to prevent the recurrence of payment delays, with a focus on high-quality implementation of clearance actions [2]. - The establishment of a social credit system is essential, where entities with severe payment delays may be listed as untrustworthy, thereby creating a pressure mechanism to combat malicious debt evasion [3].